Equitable Whole Life with six dividend options

Equitable Life

Equitable Life offers a very competitively priced participating whole life policy. Unlike non-participating whole life policies, participating whole life policies pay a dividend based on the profits of the company. They offer guaranteed premiums and lifetime protection, though the dividends are not guaranteed.

Equitable Life’s participating whole life policy has six dividend options: paid-up additions, premium reduction, dividend on deposit, premium reduction or paid in cash, enhanced protection, and purchase units in a common stock fund.

The last option, to purchase units in a common stock fund, is not available in many traditional whole life policies and is an attractive feature. It allows the policy owner to combine the guarantees of whole life coverage with the growth opportunities of equity-based investments.

The plan is available on Life Pay or 20 Pay bases, and you can add Term 10, Term 20, or Spousal Term riders.

A 35-year-old male non smoker can take out $100,000 of an Equitable Life participating whole life plan for a premium of $163.00 a month. Based on the current dividend rates, which are not guaranteed, the plan has a cash value of $123,018 and a death benefit of $260,518 at age 65.

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  • LSM Insurance
    July 30, 2008 at 4:30 pm

    Hi Nora,

    Thanks for the question. I just ran Equitable Life’s quote against one of it’s primary competitors Canada Life.

    There are not as many companies in the Canadian Participating Whole Life market as there were in prior years.

    Based on a $100,000 42 Male Non Smoker with a Paid Up Additions dividend option based on each companies current projected dividend scale. Please keep in mind dividend rates flucuate and are not guaranteed. Here is how they stack up:

    Canada Life
    Premium $234.00 a month
    Cash Value 10 years $9,226; 20 years $81.947
    Death Benefit 10 years $114,896; 20 years $198,334
    Equitable Life
    Premium $210.00 a month
    Cash Value 10 years $18,427; 20 years $68,829
    Death Benefit 10 years $120,259; 20 years $176,299

    Equitable Life also has a common stock option not available on most Whole Life plans.

    Regards … Lorne

  • Nora
    July 30, 2008 at 4:16 pm

    How does Equitable Whole Life policy stack up against some of it’s competitors for a 42 Male Non Smoker.

  • LSM Insurance
    July 28, 2008 at 8:26 pm

    The paid up addition option is the best option for increasing your Whole Life policies death benefit. The paid up additions also increase your policy cash value.

    If I can help out further please let me know. Regards … Lorne

  • Jordan Smith
    July 28, 2008 at 7:53 pm

    Which dividend option is the most tax efficient way to increase my policies death benefit. Thanks …